The Rupee opened weaker on broad risk aversion and softer Asian peers, while markets look for signs of central bank action to prevent a break past a psychological threshold. The local currency has traded in a narrow range over the past two sessions, lacking clear directional bias. Whenever the rupee inches higher, sufficient dollar demand from importers and speculative accounts emerges, while declines are met with caution amid fears that the Reserve Bank of India could intervene. The caution stems from the central bank's surprise dollar sales before local market opened last week to push rupee higher, prompting expectations that the RBI will lean against any breach of 91. Foreign investors returning to selling in Indian equities over the past two sessions is adding to pressure on the rupee. Meanwhile, bankers continue to flag regular dollar demand from oil companies and NDF-linked maturities. The rupee will have to contend with India's merchandise trade deficit widening to a three-month high of $34.68 billion in January and the wider-than-expected goods trade deficit driven by a rise in gold and silver imports. Asian currencies and shares dropped. Futures indicated that U.S. equities will open lower when they resume trading on Tuesday. Markets are awaiting signals later this week on the potential timing of the Federal Reserve rate cuts, with minutes from the Fed's last meeting and advance U.S. GDP figures due. The dollar held gains on Tuesday as markets awaited signals, expected later this week, about the potential timing of rate cuts by the Federal Reserve. The yen trimmed losses from a day earlier when worse-than-expected Japanese economic data stirred expectations that the government would ramp up stimulus. The Aussie dollar edged lower after the release of Reserve Bank of Australia's minutes from its February meeting. The dollar index , which measures the greenback against a basket of currencies, was little changed at 97.12, after a 0.2% gain in the previous session. The euro fell 0.06% to $1.1843. The yen strengthened 0.15% to 153.28 per dollar. Sterling weakened 0.07% to $1.3616. Data on Friday showed U.S. consumer prices increased less than expected in January, giving the Fed additional leeway for policy easing this year. Money market traders are pricing in 62 basis points of easing for the rest of this year, implying two quarter-point cuts and about a 50% chance of a third. The next cut is likely in June, with markets assigning an 80% chance of a 25-basis-point reduction. The Federal Open Market Committee issues minutes from its January meeting on Wednesday. Other key data points this week include inflation readings for Britain, Canada and Japan, as well as preliminary readings of global business activity on Friday. A recent rally in the yen stalled on Monday when official figures showed Japan's economy barely grew last quarter, eking out an annualised 0.2% expansion. The Australian dollar weakened 0.07% versus the greenback to $0.7064. New Zealand's kiwi weakened 0.08% to $0.6026 ahead of the Reserve Bank of New Zealand's policy meeting on Wednesday, when it is widely expected to hold rates steady. Oil prices were steady on Tuesday as investors assessed risks of supply disruption after Iran conducted naval drills near the Strait of Hormuz right ahead of nuclear talks with the U.S. later in the day. Brent crude futures were 0.2% lower at $68.59 a barrel by 0106 GMT, following a 1.3% gain on Monday.......